www.HomesinBostonMass.com

November 22, 2013

Thea Simolari from The Mortgage Network on What Not to Do When Applying for a Mortgage

Thea Simolari - The Mortgage Network

On the call this week, I interview Thea on "What Not to Do When Applying for a Mortgage". There are so many things that can affect your abiltity to get a mortgage or not. Why leave it to chance. On the call, we speak about some of the things that can affect a mortgage lender's decision to grant or deny a mortgage. The video containing the teleconference with Thea is at the bottom of this post.

Purchasing a home is an exciting time. You get all awakend by the thoughts of what furniture, artwork, paint, appliances to purchase in order to make your new house a home. The one thing I can tell you is that you don't want to splurge before you close on the loan to the new house.

I know Bernie and Phyl are tempting you now with all the great credit offers, but now is not the time to take advantage of these promotions. Please wait until you your purchase your home.

There are so many factors in purchasing a house and your financial preparedness. Thea and I regularly host webinars on home buying in Boston. If you would like to be notified of our webinars and the schedule, please fill out the form below:

Like Santa, Banks are Checking on Who has Been Naughty and Who Has Been Nice

Banks not only check your credit at the beginning of the process, but also at the end. The banks pull credit twice. They are ensuring that you did not go out and take on more consumer debt which would impact your ability to make your required mortgage payments. In addition to a credit check, the bank's underwriting department will be checking your employment. The underwriter for the bank will check on your employment nearer to the time of the closing to ensure tha you are still employed and will be able to make due on your new mortgage obligation.

What about Uncle Guido's Dough?

Another issue for a lot of home buyers is the topic of receiving a deposit as a gift. Receiving the gift is fine, in fact, if you don't want to receive the gift I am happy to give you my bank account deposit information. No really, the issue is that you need to be able to document the gift. What this means is that somestimes you will be asked to have the donor of the gift to write a gift letter. A gift letter is a letter that states that they are gifting you the money for the deposit on a home and it will define their relationship with you.

Download the Checklist for Applying for A Mortgage

It may be best to be in the know so that you do not make any rookie mistakes when undertaking your home purchase. You can get the report here:

Plan to Go Under the Microscope

As you can see from the three things I have written about the mortgage process is pretty invasive and you will come under a microscope. You need to make sure you have the the right team. I would advise a local lender and not an Internet based lender. You need boots on the ground. I wrote about all the reason why you need a local lender here.

My advice to you is that if you are planning to make a purchase, you get the advice of a seasoned mortgage loan officer. You need to get the benefit of somone with experience in make loans of all different kinds in all different kinds of mortgage climates and economic times. There are nuances in every situation. You need to rely on the mortgage professional's expertise to close the loan. This is crititical.